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‘It’s even worse than we thought’: IRS places lien on Charlton hospital

Special to SEGAZINE

The IRS has placed a lien against the Charlton Memorial Hospital building and property for the failure of the medical facility to pay at least $500,000 in payroll taxes going back to 2011.

Hospital CEO H.D. Cannington told members of the Charlton Medical Services Committee (CMSC) last week the actual amount is owed is about $660,000.

“At some point, a decision was made to use the money to buy supplies instead of paying the IRS,” he said. “In retrospect, it might have been a bad decision.”

According to the lien filed in the Charlton County Clerk of the Court’s office on September 3, 2013, the hospital failed to remit taxes totalling $516,524.24 for pay periods ending September 30, 2011, December 31, 2012, and March 31, 2013.

“We intend to negotiate an ‘offer in compromise’ [with the IRS],” Cannington said, “but we’ve got to be current with them to do that. We hope to be there by next week and it‘s been recommended we offer $100,000 to settle this.”

Since the proper amount of taxes were withheld from hospital employees’ checks, they will likely not be held responsible for the unpaid taxes. The hospital, though, is another matter.

Employers are required to hold deducted taxes in “trust” for the government. When an employer fails to pay its withheld taxes a lien can be placed, fines can be levied, and criminal penalties — including jail time for responsible individuals — can result.

via Charlton County Herald > News > ‘It’s even worse than we thought’.

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